SB 1430

Bill Subjects

Abstract

(1) Existing property tax law provides, pursuant to the authority of a specified provision of the California Constitution, for a homeowners' exemption in the amount of $7,000 of the full value of a dwelling, as defined, and authorizes the Legislature to increase this exemption. This bill would, beginning on the lien date for the 2011–12 fiscal year, increase the homeowners' exemption from $7,000 to $27,000 of the full value of a dwelling for assessees who are 62 years of age or older. This bill would also require, for the 2012–13 fiscal year and for each fiscal year thereafter, the county assessor to adjust the amount of the homeowners' exemption for assessees who are 62 years of age or older by the percentage change, for the first 3 quarters of the prior calendar year, in the House Price Index for California, as specified. (2) The California Constitution requires the Legislature, whenever it increases the homeowners' property tax exemption, to provide a comparable increase in benefits to qualified renters. The Personal Income Tax Law authorizes various credits against the taxes imposed by that law, including a credit for qualified renters in the amount of $120 for married couples filing joint returns, heads of household, and surviving spouses if adjusted gross income is $50,000 or less, and in the amount of $60 for other individuals if adjusted gross income is $25,000 or less. Existing law requires the Franchise Tax Board to annually adjust for inflation these adjusted gross income amounts. This bill would, for taxable years beginning on or after January 1, 2010, increase this credit for qualified renters who are 62 years of age or older. This bill would establish the credit amount as $151 for married couples filing joint returns, heads of household, and surviving spouses if adjusted gross income is $50,000 or less, as adjusted for inflation, and a credit amount of $75 for other individuals if adjusted gross income is $25,000 or less, as adjusted for inflation. This bill would also require, for taxable years beginning on or after January 1, 2011, the Franchise Tax Board to annually adjust for inflation, based upon the California Consumer Price Index, the amount of these credits. This bill would also make technical, nonsubstantive changes to the renters' credit. (3) By requiring county officials to implement a new amount for the property tax homeowners' exemption, this bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions. (4) This bill would take effect immediately as a tax levy.